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tv   Varney Company  FOX Business  November 9, 2012 9:20am-11:00am EST

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fragile. like sandra said, you throw europe in the mix and boy, oh, boy, where is the good news? >> completely outside the box for a second, not a tradable stock or bond, real estate. will you express an opinion on a single-family home in a good neighborhood in the united states. i say that is a terrific investment, if you got the staying power because you've got a low mortgage rate and you've got a low price. what do you say? >> absolutely right. number one, you will have to get over hurdle first of all getting a mortgage. once that's been done, and that is taking a lot of time now, once that's been done, the government, this is one thing you have to listen to the government on, it is telling you to go long because of money in qe3, 40 billion per month pouring into mortgage-backed. they're telling you to go long. you could see a little bit of a up did. we've come off so hard so long we're towards the bottom and will be a good investment the next five or 10 years. stuart: i wanted to end this on a positive note. you always do it more me,
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scott shellady. what a welcome guest you are. see you soon. thank you. >> see ya. stuart: the message is very clear from the democrats, tax the rich, but republican senator mitch mcconnell, says, not so fast. a line has been drawn in the sand in washington. get ready for a fight. we'll cover it next.
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>> pay our fair share of taxes. paying my fair share of taxes. everybody paying their fair share. americans who can afford it should pay their fair share. time for congress to stand up for the middle class and make our tax system fairer. we have to make sure we have got a tax system that reflects everybody's doing their fair share. americans who can't afford it should pay tear fair share. i believe everybody should have a fair shot. and everybody should do their fair share. stuart: that is president obama bringing back bill clinton's theme, pay your fair share, i know is
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sounds different with a british accent. pay your fair share. he said it so much became a campaign slogan, tax the rich. senator harry reid said the results of tuesday are proof that americans want to tax the rich. however, the republicans have fired back. here's what senate minority leader mitch mcconnell said. i'm quoting now. i know some people out there think tuesday's results mean republicans in washington are now going to roll over and agree to democrat demands that we hike tax rates before the end of the year. i'm here to tell them there is no truth to that notion whatsoever. that perhaps is a read my lips moment, perhaps. now this is a standoff being. the standoff is just beginning. the fiscal cliff, that that's what we're trying to resolve here, that is coming at end of the year, january 1st. if the two sides sides can not work out a deal, huge tax increases are coming, big spending cuts as well, if we go over that cliff. the consequences of that, very serious.
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9.1% unemployment and a recession, so says, the con aggression budget office. the cuts would take a half percentage point right off gdp, right off the bat. that says the cbo would put america back into a recession. that is what is at stake over the next month and a half. the president will give his side of his story in remarks later on today. he will not be taking questions. speaker boehner will speak later on today and apparently he will take questions. it is all lining up for later on today. go to the facebook page, please. tell us what you think. who will blink? will a compromise be made? will either side be happy. read some comments on the hour, in the next hour i should say. the dow has dropped more than 400 points since president obama was reelected. that was two days ago. futures are pointed to another down day today. the fiscal cliff looms as we told you. the opening bell is next.
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item two, greece. they want more money, yep, they want more and they want more time to pay back the already enormous debt. riots continue. seconds from the opening bell. right now esee features will be down green. this market is opening lower again. we're down 434 points the past few days. it is the obama selloff. and it will continue when the market opens. it is open and the opening trend is down again. we're expecting it down 50, to 70 points in the first couple minutes of business. analysts are concerned at production of apple. some of these concerns have eased. the stock is near a five-month low. it is down nearly 150 bucks from the high and its stock is held by many, many, mutual funds. a lot of people losing here. sandra, where is the apple open? >> 540 bucks, a far cry, stuart, from the high it hit several weeks ago. we're looking at apple $540
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a share. this is a huge drop-off. you talk about the production worries? that was something that spooked investors, but this selloff in general of apple shares is what is spooking investors. oppenheimer analyst stepped in and says the saleoff is overdone. they're urging clients to buy apple at these levels. stuart: it always bounces, not always, but in the past the last few years every time it bounced down it came up nicely again. it is i want to leave time to tell us about disney. what is with profits, what is with the company as business? >> they missed on revenues last night when they reported earnings. that is the biggest problem. disney a dow component essential to the performance of the dow jones industrial average. it is down 6% at the open at just over 46 bucks a share. they reported that, their sales missed estimates but here's the bottom line. they reported improvement in their media networks, their cruise lines, their theme parks.
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there was a lot of good news in the report. stu, investors see the fact that sales missed estimates and they're hammering on the stock this morning. stuart: that is a big drop for a big company like this. 6% is a big drop. dow stock as well. thank you very much indeed, sandra. >> thank you. stuart: the dow industrials did indeed deed open 60 points lower than expected that takes the dow down, look at that, 12,750. we're down 500 points from the day of the election. the fiscal cliff, higher taxes looming. got all of that in addition to working towards a compromise on that, senator harry reid, i want to lead to completely different issue here but it was raised by harry reid. he is sticking to president obama's green agenda. focusing on totally separate issue here. that is climate change. listen to this. >> climate change is extremely important issue for me and i hope we can address it reasonably. something we've seen with the storms over well messenger our country and the world.
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we need to do something about it. stuart: you know the left really jumped right on sandy, the hurricane, jumped on it from the beginning. used it as example to push climate change, their climate change agenda. joining us bob dean from nrdc action. bob, welcome to the program. you and i oft argued in the past whether we've got global warming or whether these storms are the result of global warming. i want to put all of that on the side today. let's not argue about it. i'm coming to you for information. i want you to tell us what kind of policies are on the agenda for president obama's second term when it comes to climate change. go. >> three things, stuart. we need to rally around the public mandate to address the carbon pollution warming the planet. that is important. because our politicses have been divided on this the public is united. that's what we saw on tuesday. stuart: let me start stop you right there. you want us to rally around the mandate, said you're trying to rally public opinion. that is item number one, correct? >> well, because, what we
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have was very clear choice here. mitt romney saying climate's joke. president obama saying it's a threat and in states all across the country people rallied around the candidate who recognized science and recognized the threat and promised to do something about it. that is number one. stuart: numb brer two, what policy will the president pursue? >> number one we need to go after carbon emissions from our power plants in this country. that is the single largest source of the industrial carbon pollution that is changing the climate, warming the planet. stuart: how do we do it, bob? how do we do it? >> well, the epa is proposed some standards to reduce carbon emissions from new plants. we need to now turn that towards existing plants so we get this carbon reduced in our air. people want that reduced. stuart: i'm not arguing with you if that is the policy, if you're going to tighter emissions on existing plants, i'm saying that is going to cost money. that will raise the cost of electricity generation. i think you would agree with that? >> it will raise the cost of
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pollution, stuart, i agree with that. it says if you're polluting air, going to dump tons of carbon emissions into the air that needs to stop. we have number of ways to figure out how to do that. stuart: bob, i'm listening. i'm not arguing here. >> thank you, stuart. stuart: most welcome. >> final thing of course is to invest in building clean energy economy of the future that means energy nichesy for all of is. do more with less. means renewables. finally means putting a stop to ideas that would make matters worse like keystone xl pipeline, take dirtiest oil on planet. pipe it through the america's breadbasket ship it to chiia. that is for oil profits. stuart: i have plenty of room for disagreement there but i'm determined to back off. i simply want you to tell our viewers, they're investors, and you have told them exactly what to expect in terms of policy and how it will hit them. i understand entirely. so you're going to clamp down on existing power
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plants, clam down on their emissions. that will cost money. you will double down on green energy production and number three, no pipeline? have i summarized it okay? >> yes, sir. because the idea is to give us clean energy options so that we can move forward in a way that reduces these carbon emissions that are warming the planet. stuart: look, bob, i didn't want to argue with you about any of this. i just want to know where we are going in terms of policy with another four years of president obama. you've given it to us. i appreciate that, bob. come again soon. we'll discuss these policies as they arise, okay? >> thank you, stuart. stuart: thank you, sir. all right that is that dealt with. we're down, i should take you to the market for a second. the dow is down 29 points. we were down 65, 70. we started off badly on the downside, sharply again. now we're down just 27. maybe a little stabilization of the selling going on here, dow down 27. nasdaq, tech heavy, of course is up two points.
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for the first time since the 1970s new york city begins rationing gasoline today. it is using odd even system for the license plate just like new jersey. the gas crisis caused by hurricane closed hundreds of gas stations, caused long lines waiting to fill up. a rather small drop in gas prices overnight. the national average for a gallon of regular, 3.45. diesel still right there at $4.01 a gallon. tell you what we have got coming up. no stopping obamacare. four more years of president obama means states have eight days to decide how to implement the new law. new at 10:00, dr. marc siegel tells us exactly what that means for you and your health because obamacare is definitely coming. back to sandra. what's with jcpenney. down again? >> apparently the turnaround plan is not working for ron johnson at jcpenney. this is one of the biggest losers. top loser in the s&p 500
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down more than 7% stu, in today's session. same-store sales at the department store chain in the third quarter, down 26%. that was a much bigger drop than analysts had been expecting. revenues for the quarter also falling short. by the way, ron johnson, in that earnings release saying, quote he is 100% committed to his turnaround plan for the retailer. it is over 100 years old, stuart. nobody seems to be able to turn this thing around. the stock taking another hit today. stuart: below 20 bucks a share. i understand, don't know whether you can punch it up but mcdonald's down again. there you go. 84 bucks a share on mcdonald's. they reported yesterday a decline in sales at same store american outlets of 2.2%. sandra, i took that as kind of an economic indicator, an overall economy status indicator. it didn't look good. down again today. >> hey, usually mcdonald's
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is recession-proof. doesn't even seem to be the case today. a lot of folks are cooking at home, staying at home, rather than going out to restaurants like mcdonald's. this is dow component. this is big deal. when sales are down there, sales are likely down elsewhere. stuart: you know what it was? i think it is the dollar menu. eating more hamburgers but paying a buck for them. they're going to the dollar menu. i think mcdonald's will relook at dollar menu. >> that is great point. a lot of retailers are warning about the holidays. they're lowering prices everything so much it will cut into profits. stuart: i can get a 53 cent black coffee, a senior's black coffee. that is pretty good. sandra, thanks very much. we'll get back to you very soon. >> thank you. stuart: time is money. here is 30 seconds worth what else we've got for you this friday morning. iran fires on a u.s. droen. what are they trying to do there? we'll ask colonel ralph peters about that. voters in two states
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give thumb's up to marijuana for recreational use. don't need it for medicine. just get out there and get high. looks like a winner for the weed. we'll talk to a leader from the pro-post movement. be careful what you wish for, you might get it. california voters gave them a liberal supermajority in the state legislature the more taxes, more spending. here it comes. one of our resident californians will try to defend his hopeless state. e-mail us please. we're looking for it. varney at foxbusiness.com. send them in please. want to know what you think. friday morning, time for seven early movers. priceline buying rival kayak for $1.8 billion. kayak way up on that one. we've got groupon sees less money coming in. they call it revenue. we call it money coming in. dropped below three bucks a share. that is huge hit. the car rental company, zipcar expects to return to profits. the market kind of likes that. it is up 19%.
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scripps health care solution may sell itself. that stock is down. positive outlook from energizer and it's up. "hunger games", that gave lions gate entertainment nice profits boost in the stock. we have mining company, molycorp posted smaller than expected loss. molycorp is, up 4 1/2%. the president obama says you didn't build that. that was back in july. we asked a small business owner how he felt about the president's comments. now that obama has four more years, does he still feel the same way? >> if somebody put a road in front of our house and handed us ethernet connection that is all it took to start a business. because we missed out and spent last four years doing --. [ male announcer ] how do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process --
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we have so much technology in our store to really show the customers what's going on with their bodies. you can see a little more pressure in the shoulders and in the hips. ... now you can feel what happens as we raise your sleep number setting and allow the bed to contour to your individual shape. oh, wow. that feels really good. at sleep number we've created a collection of innovations dedicated to individualizing your comfort. the sleep number collection, designed around the innovative sleep number bed - a bed with dualair technology that allows you to adjust to the exact comfort your body needs. each of your bodies. so whatever you feel like, sleep number's going to provide it for you. during our semi-annual sleep sale, save $500 on our classic series special edition bed set and for 5 days only enjoy 36 month financing on selected beds but only through monday. you'll only find the innovative sleep number bed at one of our 400 stores, where queen mattresses start at just $699. stuart: look at this carefully because we may just turn positive after 2
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1/2 days very negative trading. maybe we'll turn positive. remember this, if we get any kind of deal on this fiscal cliff, i mean any kind of deal, you have some certainty in the marketplace for business, haven't you? that could be a minor leagues positive. check the price of oil. where are we now? $85 a barrel. now that the election is over we wanted to bring back some small business owners we spoke to earlier this year. what will they do now that the president has been re-elected for four years. last time our next guest responded to this. >> somebody invested in roads and bridges if you got a business, you didn't build that. somebody else made that happen. stuart: kyle caylor. kk tools remembers that statement very well indeed, a company that his father founded by the way 40 years ago. kyle, you were not happy when president obama said that because you were on this program saying hey, i
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did build it. i remember how vehement you were. now look, the president has he has got another four years. i want you to look to the next four years. how are you going to respond? what are you going to do? >> we are going to keep working hard, stuart. we're not going to stop working. we're going to start building harder and better than we have in the past. we'll have to do that, to come across some epa regulations that president put in. last guest talked epa regulations. i listened to that intently. one of our biggest customers is international truck and engine in springfield ohio. they are a great company and build a great truck. they have had hard times last few years, they built an engine 10 years ago would have passed epa regulations from ten years ago. but the epa raised that bar. because they have done that, international truck and engine used patented technology that the epa patented. they paid them a fee for that. put it in their engine and
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the engine actually doesn't pass the regulations that the epa has set. they have actually had to, let that engine go and they're actually putting competitor's engine in their truck. in our town, the company we do work for has gone from 6500 workers to a low of 300 work. that is epa changing the way business does business. stuart: kyle, this is very, very interesting because we talk in generalized terms about we're going to cut emissions. okay. the epa will crack down. you've given us a tangible example of where a crackdown costs jobs, costs people dearly, right there on the ground floor. >> absolutely. stuart: relate this to your own business. you run kk tools, got it. as you're looking towards four more years. you have got obamacare. you've got financial regulation. you have the epa coming after you. what are you going to do? how do you see things going? >> we have to get smart about the way we do
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business. manufacturing, there is less and less people manufacturing things in this country. i spent the last month, 11 months campaigning for office and i carried around these flyers with me everywhere i go. these are auction flyers from manufacturing first from all over the midwest going out of business and leaving this country. we have to get smart about how we go after the businesses that are left. the front of this sheet shows a business, irwin tool, out of nebraska. they made the vise grip pliers for 80 years in this country. the company closed up, sold off machinery and moved to china. today if you go into wal-mart and pick up a vise grip pliers, said made to irwin standards in china. we are going after businesses that still produce things in this country and they're getting harder and harder to find. but by gosh we're going to find them. we're some of the last tool and die shops in our area. we'll be smart how we do business. we have to. stuart: kyle, i'm very glad
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we invited you back. we'll invite you back again. love your spirit. >> thank you very much. thank you very much, stuart. stuart: we are almost 9:50 this morning. where is gold today. we're up $10 higher. 17.36 this morning. it has been 23 years since the symbolic fall of communist. on this day, 1989 the barrel berlin wall came down, started knocking it down. a true leader back then? remember what happened. remember this extraordinary moment. >> mr. gorbachev, tear down this wall. [cheers and applause] stuart: i don't know how to describe it but i get emotional when i see that man. liz macdonald, gerri willis join the company. that topic, berlin wall next.
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[cheers and applause] stuart: that was wonderful. 23 years ago today began the demolition of the berlin wall. for those of us who spent their adult lives feeling the impact it was an extraordinary event. back then, america was a
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leader of the world, accomplishing big things, great things. quick comment, gerri? >> this was the power of personality. this wasn't a big spending program. this was ronald reagan saying tear down this wall. that is exactly what happened. >> the irony it was symbol for decades of division and idealogical antagonism. when it camed down ushered in policy of detente and constructive engagement. this is symbolic day for congress. should listen to what happened in the aftermath of the berlin wall. stuart: this is symbolic day for president obama. what ajor thing will he accomplish? what major statement to our enemies and rivals overseas. >> you, president obama and congress tear down the wall between you two. stuart: oh. >> you really that is going to happen? i'm not convinced. stuart: no, neither am i. wait a minute, are we now talking about the fiscal cliff? there will be agreement before end of the year. we'll talk about that later, okay.
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right now we're savoring 23 years after the berlin wall came down. >> that's right. stuart: some states scrambling to meet an obamacare deadline. they were waiting for the election. now that president obama has won, they have less than two weeks to implement a key provision in that health law. dr. siegel is with us. what key provision and what does it mean for doctors and their patients is it? sabre-rattling for iran firing at a u.s. drone. colonel ralph peters what the u.s. should do and will do about this. both stories will be new at 10:00. i put away money. i was 21, so i said, "hmm, i want to retire at 55." and before you know it, i'm 58 years old. time went by very fast. it goes by too, too fast. ♪ but i would do it again in a heartbeat. [ laughs ] ♪
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stuart: states scrambled to meet a key obamacare deadline. now that the president has won reelection and obamacare will live what does that mean for your health care? dr. siegel is here and a couple minutes. iran fires at an unmanned u.s. drone or start of heightened tensions with rogue iranian dictator? clear battle lines being drawn as we head for the fiscal cliff. we go over it. the cbo predicts another recession. president obama and john boehner will address on the economy later on today. the consumer sentiment number
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from the university of michigan, moved up, no impact on the market, dow is down 22, below 12-8. here is friday morning company. gerri willis is back. liz macdonald with a sand sandra smith from the floor of the stock exchange. where is it now? >> now down about 6% in the trading session. to give disney credit it is up 26% so far in 2012 outperforming the market. reported sales that missed estimates, stock really down, media networks and cruise line and theme park, all reported improved business but that is not enough to boost the stock. stuart: if disney loss is causing a 22 point loss, the dow
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will be up, i got to move to j.c. penney, that below 20? >> this is not a good looking stock, it is down 6% in today's trading session. it lost 26% so far this year. this is also a company in the middle of a turnaround. you wouldn't know it by looking at the stock. ron johnson says he is committed to the turnaround plan those sales are down. same-store sales down 26%. that was more than analyst forecast. not looking like a merry christmas yet. stuart: you really do have a problem. thanks very much. the dow is down 10, at 12,800. to the big story of the day, the week, the rest of the year. that is the tax battle in washington. it is coming at an end of the year, big tax increases, spending cuts and huge economic consequences.
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the congressional budget office says unemployment could go back up to 9.1%, gdp would be cut around 1/2%. that would mean a recession. all of that 9% unemployment and recession if we go over that fiscal cliff. numbers came from the cbo. that is a non-partisan government analytical organization. to avoid all of that there will have to be a deal. need this side seems willing to give in. the president wants to raise taxes on the rich. listen to this. >> pay our fair share of taxes. paying my fair share taxes with everybody paying their fair share. americans who can afford it should pay their fair share. >> time for congress to stand up for the middle-class and make the tax system fair. make sure we got a tax system that reflects everybody doing their fair share. americans who afforded to pay their fair share. >> i believe everybody should have a fair shot and pay their fair share. stuart: republican senate leader
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mitch mcconnell refuses to raise tax rates. i am quoting now. i know some people think tuesday's results mean republicans are going to roll over and agreed to democrat demands we high tax rates before the end of the year. i am here to tell them there's no truth to that notion whatsoever. we are talking tax rates on the rich, the president says raise them. mitch mcconnell the republican says no way. i say there will be a compromise before the end of the year. and you say? gerri: there could be a compromise that won't be -- you are wrong when you say as you did in the break republicans are going to blink. the president does not have a mandate. team needs the republicans to work with if. stuart: he won. gerri: he did not in by a huge majority. the president is going to have to bend. he is not running for reelection. we have him full time. stuart: what forces in to bend?
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gerri: he wants to get a deal. it makes him look good. makes other democrats will good if he gets a deal and i think he will go for that. i know there could be a change. you think it will be straight, the same thing he has been doing. i disagree. we will see a band. stuart: when you think the president will do what he has not done the last four years, change course. gerri: it is a different world. he has four more years -- [talking over each other] gerri: doesn't have to appeal to the hard left. stuart: we disagree. you think the president will blink. i say republicans will blink. either way, taxes are going to go up. gerri: that is a big problem because the economy is anemic. we have two million more people unemployed. liz: reform your government before you take a nickel more out of us with the morbidly obese fannie mae and freddie mac and the government abuse. stuart: i am with you all the way. liz: that gets lost in the
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debate. the president talking about fair share. you never hear about the government doing their fair share of fixing themselves first. stuart: what really angered me was richard trumka saying that the rich should start to pay -- [talking over each other] gerri: the rich already pay the majority of the taxes. the bridge is funding government, and the government programs, they are already there. you can debate that. the numbers are incontrovertible. stuart: are we are arranged? [talking over each other] gerri: purple with outrage. stuart: when your people get together with liz's people -- [talking over each other] stuart: moments from now, a purple tie, look at that. >> i love morbidly obese fannie and freddie and the economy. [talking over each other] stuart: president obama's victory means obamacare is and will stay the law of the land. so now republican governors who
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were holding off on it have to scramble to figure out what they are going to do. states can set of the rhone exchange with federal money, let the federal government do it all or they can do something in the middle and share the job with the feds and they have only a week to decide. eight states are standing out from this. here is dr. siegel. a second into the action is required here. they have got to set up exchanges. eight of them have not set a exchanges yet and move in that direction. charles: it is worse than that. the headline is like a uniform. you have 16 states plus washington d.c. who said they would setup exchanges are in the process of already have. nine said they won't including texas and florida that have been vehemently against obamacare in every way. stuart: what are they going to do? >> turnaround at half of our states will save the fed have to do it. if the states don't agree to do it by next friday, the fed will set up exchanges for them.
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stuart: that means federal money will be used with control and this is how we are going to do it, this is what we're going to do. >> more federal money. also a debate whether you can get the subsidy, the federal subsidy on the federal, state exchange. but this is tons of money being poured in by the federal government and if you are a patient and small-business says i am not covering you and you go to the exchange which is why we are afraid of, go to that exchange, every state has a different kind of exchange. it will get very confusing. stuart: let's sweep aside for a second and not worry about exchanges and who has gone how far, sweep the side. you are a practicing doctor and you know that obamacare is coming. no way around it. it is your. spell it out. what does that mean to you? what does it mean to your patients? what does it mean for the cost of care? >> first of all, we all like things as they are.
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every time there is change it means more paperwork for us. a vacation comes in and says i'm getting a new insurance, i went to the state exchange. does your doctor take this? he may not. team may say i don't work with an insurance. it is not paying me enough. the independent medicare advisor board is coming along and is going to start cutting medicare payments to physicians, hospitals, some services are going to be allowed, others not. the more that happens, the more physicians are going to drop medicare and turnaround and drop out of some private insurances because private insurers always follow what medicare recommends. we have an insurance expansion, dr. shrinkage. doctors running away, doctors retiring early, taking cash only. less people going into medicine. this is the future. there is no guarantee whatsoever that obamacare is going to lead to better health care. probably the opposite. stuart: obamacare is here. got it.
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thanks very much indeed. california, the script says, california has lost its mind. maybe i will pull back a little on that one but businesses are fleeing the state. government continues to raise taxes and now voters elect democrats to a supermajority. tax increases, more of them coming and without a fight. my take on the formerly golden state coming up at 10:28 this morning. pentagon officials are reporting iranian fighter planes shot at than unarmed american surveillance drones last week over international waters. the drill was not hit. tension in the least clearly rising on that. fox news stretch with this, analyst and author of pain at gettysburg, lieutenant-colonel ralph peters is here with us now. welcome to the program. good to see you. in the news background we are hearing president obama and the
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iranians may be edging towards one on one talks for the first time in thirty years and presidential assistant valerie jarrett may have been spearheading the move to get these talks going. and now this unharmed grown is fired on. what do you think is going on? >> several things are going on. the iranians are angry about the sanctions. it doesn't mean iran is going to negotiate away their nukes but they are angry. they are angry about our surveillance efforts against them even though they are in their international airspace and waters and they set up what they thought was an ambush but they screwed it up. the iranians. this. they wanted to shoot the grown down. that is why they send up the aircraft they did but they sent all russian build aircraft with inadequately trained pilots. looks like the guns were not
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calibrated and they missed twice, it is an embarrassment for them. a lot of iranians got chewed out but the iranians also did it because they know they count on this president being timid. they know he desperately wants negotiations and negotiation is the opium of the chattering classes and he doesn't want to do anything about iranian nukes. he wants to talk. they are perfectly willing to talk but they want it on their terms and he will give them their terms. stuart: negotiations are the opium of the chattering classes. did you just call in that expression? that was pretty good. i am going to steal it. to you think that the obama administration will basically accommodate an iranian new? >> yes. stuart: let him get it? not do anything? >> there will be a song and dance and hand-wringing and we are doing all we can and try to negotiate but what is going to
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happen is the iranians, persians invented chess. they are good at this. they have from the world community out for years and years. not just obama's last four years. they will string out and one day there will be a test in the deserts of southeastern iran. the iranians are going to have a nuclear weapon and we're going to say now is about containment. i am convinced, convinced secret the this administration has accepted that iran will have nuclear weapons and by the way, this is the most anti israel administration we have ever had by far. it is this oral. stuart: that is an extraordinary statement and we appreciate you being here to deliver it in no uncertain terms. colonel ralph peters, thank you very much. please come again. we love this stuff. colorado and washington legalize the recreational use of marijuana.
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is it time to open shop in denver or seattle and start selling grass? darrell jones runs the university in california that focuses on the industry. after the break, the dow turns positive.
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stuart: it has been three fall from the election the we have
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turned positive. 12,822. big news in china today, new leaders are taking over, a new president takes over as premier. as they do china releases new numbers showing its manufacturing sector doing better. we have groupon. the company offers discounts of local businesses but it is struggling europe. a new record low for the stock almost exactly a year ago debut did the that 29. look at zipped car, a shikar sharing service, popular in big cities. a big appetite help them sign up more new members. don't ever get stuck behind a is a car on the highway. they are very slow drivers. back in 90 seconds with marijuana.
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stuart: watch out of iphone, strategy analysts, samsung, the galaxy s 3 was the world's hottest smart phone last quarter. they shipped eighteen million units versus a near 16.2 million for iphone 4s. that is also why apple stock is taking a big hit. look at it now, that is down $140 from the high. slightly high. voters in colorado and washington became the first in the nation to legalize recreational use of marijuana. joining us is darrell sky jones who is essentially teachers all about marijuana. how to grow and sell and market
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it. have i got that right? >> indy you dd. thanks for having me today. stuart: would you consider this a breakthrough? voters in colorado and washington state say you don't need a prescription, it is not medication, get stoned, it is recreational, it is legal. breakthrough? >> i think this is honestly a breakthrough for all citizens in the united states. think about this for a moment. up until the other day, any police officer approaching any adult with any amount of cannabis or even just the smell of marijuana treated that as contraband. now it is considered a commodity. think about that contraband. they have to take that by force from that citizen and prove it is marijuana. we are also looking at tremendous cost reduction even to our crime lab is. not just dollar costs the human cost because we can now focus on violent crime, we're not
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focusing on proving that little bag of green stuff is marijuana. stuart: in principle it is a breakthrough. you have expressed that very well. a couple more questions. what are the fed's going to do? cannabis is still illegal under federal law and the feds have gone around california busting up medical marijuana. the fed's have stepped right in. do you think the feds will step in to colorado and washington state? >> that is an interesting point and that is what is so troubling. it is not just occurring in california but montana where people are facing upwards of 80 years of mandatory minimum. compared that to jerry sandusky who is facing 30. when you look to the states that now have this opportunity to come monetize we can tax and regulate this. the feds are going to react in some way, shape or form but don't have the ability to react to everything. will be selective prosecution where a few key players are made examples of like they have been
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thus far but keep in mind 98, over 90% of all the costs to enforce this failed marijuana prohibition is taken on by the states and those two states don't have to pay for the fed's folly any more. stuart: i don't want to get into the rights or rons of legalization. technical questions. is it true the strength of marijuana, that t h c content, has it gone through the roof? you guys in your lab some been making a very potent strain. is that true? >> actually it happens more often in grow room that strains are selected for different types of benefits and in some cases how high. but it is a lot of urban myths. the reality is they tested mexican dish we'd 30 years ago and compared it to indoor hydroponic groans terrines. you still have now we wally and the 70s and if they tested that would have tested similarly to what we have today.
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stuart: don't get me in trouble. don't say that. don't get into that. it is true that weed is more potent. >> it is more available. the truth -- is available. the truth is they smoke less. stuart: i am told that some guy in a lab and i think it was an upstate california created a seed, superseed, it was 30 times more potent than the week you gotta an end point, this supercds sold for $50,000. is there any truth to that whatsoever? >> i would say if it is not urban myth i would like to meet that buy and sell him a bridge. the way canada's works is sexual just like humans. i'm about to get you in trouble again. it needs a male and female to make that see the. unless you are cloning a plant that is already known you have no idea what that seed is going
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to be. if you plant and apple, mcintosh apple you get a crabapple at the end and don't know what the sea is going to produce. stuart: we are going to leave it right there. it is very interesting. >> i hope you can come back to the university one of these days and learn about what we are talking about. stuart: it was interesting you say it is a breakthrough in terms of principle in washington state and colorado and you are right on that. thanks for joining us. >> the costliest war we have had. stuart: we will see you soon. thank you very much. california elects democrats to supermajority. no stopping higher taxes. my take on the formerly golden state next.
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>> we're going after business is better still producing in this country and getting harder and harder to find the we are going to find them and we are some of the last shot in our ariane's we're going to be smart about how we do business. stuart: that was kyle kayla of k k tools vowing to push his own business and others forward despite four more years of president obama who he does not approve of. we love the american spirit on "varney and company". you can catch every day starting at 9:20 eastern. to the big board, we are down
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430 points and we're back up eight. here's an astonishing number. 30%, about one third, that is how much data space just one company takes up on smart phones and tablets. that company is netflix. one company, 30% of the space. can the phone and internet companies keep up with that demand? interesting story. find out at 10:45. we are covering that. if you want to see where america is heading look at europe, look at greece. i have another place in mind somewhere closer to home that shows us where we are going. here's my take on california. you think it is the mess now? wait until the latest election results kick in. here's a list of the new measures the formerly golden state voted upon itself. the top tax rate goes up to
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13.3%. sales taxes go up and california will now start taxing out of state company profits if they do any business in california. the state will collect union dues so you got to pay. others, the voters in their wisdom beat back a challenge to that. is it possibly the worst of it all? democrats are on the verge of achieving a two thirds majority in the legislature so they can raise taxes and spend money at will. and they will. they are considering repealing proposition 13 so property taxes will be going up and california remains tens of billions in new spending on bullet trains, pension top offs and the new water system. there is more. their version of climate rules go into effect very soon costing businesses literally billions. i could go on but i think you get the picture. let's get to the point. they want a bailout from the fed. they are broke.
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they want federal money. they want your money. won't be called a bailout. it will be called investing in infrastructure. investing in education. aid to the states. after all we must invest in our future, right? didn't california deliver the biggest bloc of electoral college votes to president obama's second term? they only want your money. welcome to the new america.
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stuart: the latest estimate on how much hurricane sandy will cost. is a big number. now new york's governor andrew cuomo says his state suffered a $33 billion damage, throw in lost business and the total cost of the storm comes at $50 billion or more. this would make sandy the most expensive storm in the nation's history behind hurricane katrina. residents of california have a one party liberal government along with their 13% tax rate. that is on the way. formerly golden state elected a democratic supermajority for the first time in seventy-nine years. democrats are free to raise taxes to help pay for the more than $93 billion the state has in our standing debt and there is no gop in the way to challenge it.
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joining us is mark from front-line strategies. you didn't think it was going to be this bad. we had you on the show several times before the election and you didn't think it was going to be this bad. you want to do a male:our save it to later? >> i asked your producers to have you be kind with me this morning. you are absolutely right. i take it all back. i am absolutely flabbergasted that voters would not only ignored the fact the we have record team.3% marginal tax rate, the fact the we got $16 billion worth of deficits facing us in the next budget, the fact the we are bleeding over 2,000 high-income wage earners for wheat out of the state in california and have our state bureaucracy that manages to squirrel away $2.3 billion in slush money. i don't get it. maybe it is that marijuana madness and they're all hemp upon reefer. stuart: when you were listening to our previous interview.
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let's cut to. you raise taxes, you are imposing more serious environmental regulations on businesses, pushing 2,000 high-paying jobs out every week. if i say you have gone down this road. california has gone down this road because at the end of the day you're going to ask for a bailout. you are going to say we voted for president obama, get 55 electoral college votes, huge victory, now help us. am i right? >> that is the concern americans should have because we are at the point that i think we have reached the theoretical limits of state is some. the problem is margaret thatcher said with the socialist environment eventually run out of other people's money. if they go back to the federal government for this, it will be a major concern. the only thing we need to take a good hard look at is the fact that eventually this stuff has got to end. eventually voters especially in california are very fickle and
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will turn on the democrats because they think they have been fooled. stuart: the an end point is people are no longer willing to lend you money because california has a huge borrowing requirement. if lenders say no more, that is crunch time. at that point, the fed stepped in to give you aid to the states, investment in education, infrastructure. an end point is a crunch where lenders don't win, then you go for the bailout. >> you have to keep in mind we have a republican majority in the house and there is going to be a lot of battles to make sure we don't end up bailing out states. california starts it there are a number of others states similar fiscal problems. it could start a trend that would be irreversible. stuart: i have a headline in today's wall street journal. california's liberal supermajority that one of your state house of the two thirds majority of democrats and that makes it impossible to stand in
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a way of tax increases. have i got it right? >> i was talking about the federal government. you have in congress we have got a republican majority but in california is a two thirds majority and even if governor brown promising to restrain the democrats, they can override any veto he might throw at them. stuart: what is it about california that makes californians do this politically? what is it? >> part of it is unfortunately we have had a lack of clear vision in the republican party to muster the forces to come after them and that is something we are doing a lot of soul-searching in the golden state to find out ways that we can get beyond one of our natural obstacles in connecting with latinos and asian voters and more import lead to reach out to an electorate that seems to be a little less center-right than we imagined them to be. stuart: do you now have in the state of california a large
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majority of people who take from the minority of people in california who make good money? >> yes. that is exactly it. you have may be 150, 160,000 well the 1% still hanging around the state in a state of thirty-seven million people and you also have one third of all welfare recipients right here in this state. you have hit the nail on the head. there has got to be some real dramatic changes happening soon because the electorate as one democratic pollster put it, it will turn out to be the very rich, the very poor or government workers and that is all but left. stuart: that is a good end point. always a pleasure. come back and see us soon. we want to know what is going on in the formerly golden state. >> i am hanging in there to the bitter end. stuart: when you are not leaving? >> no. stuart: good for you. get in there and change it. we are doubling our data use
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every year. netflix makes up 1-third of the bandwidth used in north america, one company, one third. at&t invest $14 billion to keep up with the ban would demand. are other companies prepared to do that? they better be. maybe it is a good investment. that is next. her he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the marke he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can rry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade.
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stuart: we have a big post-election sell-off, market
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is dead flat, there are 0.35 and that is not a big gain. the dow has dropped 235 points right now. and lower ratings to other tv networks. broken theme parks not enough to make up for a lot of that. disney is down big. black friday is no longer friday. walmart is in. back in 90 seconds. talking about technology with a youngster, someone who knows this. using a third of all internet bandwidth. what does that mean?
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stuart: groupon shares are down big since their ipo. tell me why. >> a miss all expectations as far as workers and european business struggling. just about a year after they made their debut trading on the nasdaq. they are hitting a low today, dollars and $0.87 a share, now down 86% in 2012 alone, credit suisse also adding insult to injury, downgraded shares to neutral rating, at price target
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of $6.50 lowering from 11 but that is the far cry from the new low. stuart: that would be called optimism. thanks very much. three big numbers that are really big. according to analysis the firm sand line traffic to netflix makes approximately 1-third of the bandwidth used in north america, one third at netflix, one company, at at&t investing $14 billion in wireless and wireline networks. big bet on increasing the online experience. mark spoonbauer is the chief of laptop.com. let's start with this. one third of all bandwidth, is
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it right and what does it mean. >> based on the results of this study, it does seem to be fairly accurate, people love unlimited video they can get for a monthly price, in this case a dollars a month. even though there are competing services in the same city amazon was around 1% and hulu in the same ball park. there was a backlash because people wanted the disk and unlimited internet for the same price, they decoupled them and they get more people watching. stuart: is netflix clogging cup the smart phone bandwidth capacity? >> not yet. on the mobile side youtube is the biggest mover. they are 30%. stuart: using youtube more than using netflix? >> makes sense. if you think about the usage habits of people on earth on and on the golan is content snapping.
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stuart: will that change? will netflix be used more on smart phones and transfer to mobile? >> eventually especially as you talk about the at&t investments. in order to watch a full video like a movie or tv show you need to have really good bandwidth. the reason they're investing in that is you don't want the buffering delays. at a crucial plot point you don't want to see dodge dodge dodge dodge. you one more long for video content including netflix. stuart: when you got to expand the networks. that is what at&t's spending $14 billion on. >> they're behind in the race between them and verizon. we found verizon's net work to be more reliable. i am in the suburbs in new jersey and amazed that i'm getting their fastest speed in the suburbs where as on at&t there only at 80 markets. eighty versus 400 which is why at&t is making a big investment. stuart: you think it is a good
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investment? we are going to be using more bandwidth in years ahead because we want to watch anything anywhere anytime including mobile. we have -- do we have to expand rapidly and big-time our network capacity? >> we do. a lot of carriers are begging to free up additional spectrum for that purpose. i think verizon -- sprint is investing heavily. that is why you have t mobile and people investing and all these mergers happening. stuart: sound like a good investment. liz: how we rank as the country compared to other countries with their bandwidth? >> we are doing fairly well compared to other parts of the world in europe for example. korea is ahead in terms of some of the handsets they have, but in terms of speeds, we are pretty far ahead of a lot of other countries so that is something we can be proud of. gerri: i like your phrase content smacking because that is
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what people do. [talking over each other] gerri: you are responsible for this lack of bandwidth. stuart: will you come back again? we like people to explain to older people like myself what is going on out there. >> happy to. stuart: senator harry reid, new york governor andrew cuomo, mayor michael bloomberg all blame hurricane sandy on global warming. is this issue sway voters in the big election? a new rasmussen told says yes, it did. that is next.
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stuart: climate change, global warming, hurricane sandy has put it back in the national conversation and the democrats are vowing to make it part of the agenda nationally for the next four years. listen to this. >> we had is a very clear to lease. we had mitt romney saying climate is a joke and president obama saying it is a threat. in states across the country people rallied around a candidate who recognizes the science and the threat and to do some about it. stuart: that was bob deans from the n r d c relief fund in the last hour. he might be right. new poll released by rasmussen moments ago shows this. 68% of likely u.s. voters say global warming is a serious
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problem. >> they got it wrong. if you think what happened right here in new york city areas evidence of global warming forget it. we are in a hurricane route. the last category 3 hurricane we saw make landfall in this country was in 2005, will not. what is going on is storms are getting smaller, not bigger. stuart: if 60% of the voters say this is a big deal, you -- that will drive policy. you will get as -- you will get the epa cracking down on existing -- [talking over each other] liz: mitt romney was governor of massachusetts the way he signed on to a regional greenhouse gas initiative with other states in the area mitt romney did while governor. i do think climate change is an issue. stuart: it will dictate policy. liz: 68% of independent voters said it is an issue before election. [talking over each other] gerri: people have to be educated.
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we can't just accept al gore's books at face value. we have to have critical thinking. stuart: i am astonished how suddenly -- [talking over each other] it has not been around for years we have not cared about this and suddenly a big deal. not to move. president obama will speak today for the first time since his reelection. rich edson joins us from d.c.. the issue as to what he is going to say is this. will he say tax the rich, raise tax rates on the rich and stick to that as a bargaining position in this fiscal cliff debate. rich: democrat paved the way saying this is a mandate to raise taxes on wealthier americans, the theme of the middle class, raise taxes on families earning $250,000 a year to take the deficit and other spending priorities. that is the opening positions of our. with a position during the election. the president won reelection as did senate democrats. stuart: i think the market will
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move when we find out what he is going to say on the issue of tax rates. am i right? 15 minutes, no questions. rich: he speaks, no questions, five minute after 1:00 the scheduled time the we don't know if things run on time. stuart: thank you very much. highlight reel is next.
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what makes the sleep number store different? you walk into a conventional mattress store, it's really not about you. we have so much technology in our store to really show the customers what's going on with their bodies. you can see a little more pressure in the shoulders and in the hips. ... w you can feel what happens as we raise your sleep number setting and allow the bed to contour to your individual shape. oh, wow. that feels really good. at sleep number we've created a collection of innovations dedicated to individualizing your comfort. the sleep number collection, designed around the innovative sleep number bed - a bed with dualair technology that allows you to adjust to the exact comfort your body needs. each of your bodies. so whatever you feel like, sleep number's going to provide it for you. during our semi-annual sleep sale,
10:58 am
save $500 on our classic series special edition bed set and for 5 days only enjoy 36 month financing on selected beds but only through monday. you'll only find the innovative sleep number bed at one of our 0 stores, where queen mattresses start at just $699. stuart: here it is, friday highlight reel. role it plays. >> pay your fair share. >> pay your fair share of tax. >> he wants to make a deal, it makes them look good. stuart: either way, taxes will go up. i know you think they will roll into democrats demands, we hike tax rates before the end of the year. i'm here to tell him there is no truth to that notion whatsoever. as you can tell, gerri willis and i have a dispute. i say president obama will not
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retreat from tax the rich, raise tax rates on the rich. you say that he will compromise. >> you think he has some kind of mandate from the people. it was far closer than that and he has to take that into consideration. what will be very interesting the next four years the president is actually working for living, not campaigning. stuart: he will not have a mandate. he won. and they have a large majority in the senate. that is political power. you excess political power. i'm told we have to wrap. now it is yours. >> which president obama will we see today? will he move to the middle of the fiscal cliff priority number one,

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